IDBI Bank stands out as a prominent player in the private banking sector, offering attractive IDBI education loan schemes tailored to the higher education aspirations of Indians. These education loans pave the way for pursuing studies at esteemed foreign universities, alleviating any financial worries. What sets IDBI apart is its commitment to providing additional advantages, such as government interest subsidy schemes and tax benefits under section 80 E. The primary objective of IDBI Bank’s education loans is to extend financial assistance to deserving and meritorious students, enabling them to pursue advanced education both within the country and overseas. With a focus on ensuring end-to-end financial support, IDBI Bank provides a range of services and straightforward repayment options.
| Highlights of IDBI Education Loans | |
| Key Features of IDBI Abroad Education Loan | – Study Abroad Education Loan (Interest Rates – 10.60%) – Non-Vocational Course Education Loan (Interest Rates-8.50-11.10%) – Skill Loan Scheme (Interest Rates- 11%) |
| Eligibility Criteria and Courses Under IDBI’s Programme | – Eligibility and Courses Covered under all the 3 loan schemes. |
| Loan Amounts and Collateral Requirements | – Loan With and Without Collateral for all the 3 loan schemes. |
| Overview of Repayment Terms and Process | – Repayment Terms and Process of each loan scheme and methods of repayment (EMI, Prepayment, etc) |
| List of Courses Eligible for IDBI Study-Abroad Loans | – Eligible Courses for Study Abroad – Undergraduate, Postgraduate, PhD |
IDBI Bank Study Abroad Education Loan
IDBI Bank Overseas education loan provides education financing for the students who aspire to study abroad for various undergraduate, postgraduate, and PhD courses. To borrow this education loan, one needs to meet certain eligibility criteria and needs to understand the key features of this loan, like interest rates, loan limit, moratorium, etc. To understand this, go through the information given below-
| IDBI Abroad Education Loan Features | |
| Features | Details |
| Loan limit | Up to INR 75 Lakhs for selected countries INR 30 Lakhs for other countries |
| IDBI Study Abroad Interest rates | 10.60% |
| Processing fees | 1% of the education loan amount |
| Moratorium period | Course period + 1 year |
| Tax benefits | NA |
| Expenses Covered | Tuition fees, examination/library/laboratory fees, caution deposit, building fund, purchase of books/equipment/instruments, academic and maintenance fees, study tours, project work, thesis, exchange programmes, etc. |
Eligibility Criteria
For Indian nationals, including NRIs, aspiring to pursue higher education, the eligibility criteria and available courses play a crucial role in shaping their academic journey. The admission process involves either an entrance test or a merit-based selection after completing HSC (10 plus 2 or equivalent).
IDBI Bank recognises the significance of various courses and provides financial support to facilitate education abroad. Here’s a breakdown of the eligibility criteria and the diverse array of courses covered under IDBI Bank’s education loan programme:
- Admission Process: Prospective students, whether Indian nationals or NRIs, can secure admission through either an entrance test or a merit-based selection process subsequent to completing HSC (10 plus 2 or equivalent).
- Graduation Courses: The IDBI study abroad education loans cover job-oriented professional/technical courses offered by esteemed universities and institutions abroad at the undergraduate level.
- Post-Graduation: IDBI Bank’s support extends to post-graduate programmes such as MCA, MBA, MS, and more, enabling students to pursue advanced studies in their chosen fields.
- Professional Courses: Courses conducted by renowned international bodies like CIMA-London, CPA in the USA, etc., are also eligible. For these professional courses, the loan amount considers only examination fees and travel costs.
- Degree/Diploma Courses: Recognising the importance of specialised fields, IDBI Bank includes courses in aeronautical studies, pilot training, shipping, etc., as long as these are accredited by competent regulatory bodies in India or abroad for employment purposes.
- Postgraduate Studies: The education loans are applicable to postgraduate studies leading to PG degrees and PG diplomas, specifically from reputed institutes and universities.
IDBI Abroad Education Loan With And Without Collateral
IDBI Bank education loans without collateral are up to INR 7.5 Lakhs However, for loan amounts exceeding INR 7.5 Lakhs, IDBI requires collateral security to ensure the necessary financial support for higher education abroad.
This approach allows students to access varying loan amounts based on their academic and financial requirements, offering flexibility while maintaining the integrity of the lending process.
IDBI Education Loan For Non-Vocational Courses
IDBI Bank’s education loan designed for vocational courses is specifically crafted for students who have successfully gained admission to prestigious institutions in India, as listed in the bank’s approved roster.
The loan aims to provide financial support to individuals pursuing vocational education at these premier institutions. The funding is subject to a maximum limit of Rs. 40 lakhs or 100% of the total programme cost (inclusive of insurance cover), whichever is lower. The table given below states the features of the IDBI education loan for non-vocational courses)
| IDBI Education Loans For Non-Vocational Courses | |
| Features | Details |
| Loan Limit | INR 40 Lakhs or 100% financing |
| Interest Rates | 8.50 p.a.-11.10% |
| Processing Fees | NIL |
| Moratorium Period | Course Period + 1 Year |
| Tax Benefits | 80E |
| Expenses Covered | Tuition Fees, travelling expenses, books, academic and maintenance fees, etc. |
Eligibility Criteria For IDBI Education Loan For Non-Vocational Courses
The eligibility criteria for education loans for premier institutions vary based on the institution, with a mandatory co-applicant requirement. Here, we have given a detailed breakdown, particularly focusing on the financing structure for the Indian School of Business (ISB) – Hyderabad and Mohali Campus, Indian Institute of Management (IIMs), and other premier institutes.
Understanding the loan quantum, security requirements, and collateral options is crucial for students and their co-applicants in making informed decisions about their financial support for higher education. Below is a detailed table outlining the key aspects of IDBI Bank’s education loan, providing clarity on eligibility, financing limits, and collateral specifics.
| Eligibility Criteria For IDBI Education Loan For Non-Vocational Courses | |
| Eligible Candidate | For students securing admission in premier institutions in India, enlisted in the approved list of the bank. Co-applicant is mandatory. |
| Indian School of Business (ISB) – Hyderabad and Mohali Campus, and Indian Institute of Management (IIMs) | |
| Financing of up to Rs.40 lakhs | Co-applicant is mandatory. No security is needed if the applicant provides satisfying net worth/means of the parent who is the co-borrower. |
| Above Rs.40 lakhs | Tangible collateral security, along with the assignment of future income of the student for payment of instalments. |
| Premier Institutes other than ISB and IIMs | |
| Up to Rs.25 Lakhs | Co-applicant is mandatory. No security is needed if the applicant provides satisfying net worth/means of the parent who is the co-borrower. |
| Above Rs.25 Lakhs | Co-applicant is mandatory. Tangible collateral security, along with the assignment of future income of the student for payment of instalments. |
| Type of Eligible Collateral & Security coverage | |
| Security coverage for Collaterals | The value of immovable property is 1.33 times the loan amount. |
| Accepted Collaterals | Fixed deposit with IDBI Bank, LIC Policy, NSC/KVP, Government Securities/Public Sector Bonds. |
| Security coverage for Collaterals | Collaterals should cover 100% of the loan amount after deducting the applicable margin of |
IDBI Skill Loan Education Scheme
This education loan is open to Indian nationals aiming to pursue courses in Industrial Training Institute (ITIs), Polytechnics, recognised schools, colleges affiliated with recognised universities, or training partners affiliated with NSDC/Sector Skill Councils. Aligned with the National Skills Qualification Framework (NSQF), it includes a wide range of courses with no set minimum duration.
The loan amount varies from Rs.5,000 to Rs.150,000, offering flexibility to cover a range of skill development programmes. What makes this loan particularly accessible is that it doesn’t require any collateral or third-party guarantee, making it a supportive financial option for those looking to enhance their skills without added financial stress. Given below are the key features of the IDBI Skill Loan Education Scheme.
| IDBI Skill Loan Education Scheme Key Features | |
| Features | Details |
| Loan Limit | Rs.5,000 to Rs.1,50,000 |
| Interest Rates | 11% |
| Processing Fees | NIL |
| Moratorium Period | For courses up to 1 year: 6 months from course completion. For courses above 1 year: 12 months from course completion. |
| Income Tax Benefits | Section 80 E |
| Expenses Covered | Tuition/course fees, examination/library/laboratory fees, caution deposit, purchase of books, equipment, and instruments, and any other reasonable expenditure necessary for course completion (considered on merit). |
Eligibility Criteria
Understanding the education loan terms and conditions of IDBI Skill Loan Scheme is crucial for a smooth application process. Given below are some of the things one should know before applying and be eligible for the same.
- To be eligible for the education loan, the applicant must be an Indian national.
- Additionally, they should have successfully secured admission in a course conducted by Industrial Training Institute (ITIs), Polytechnics, a school recognised by Central or State Education Boards, or a college affiliated with a recognised university.
- Alternatively, admission to training programmes offered by training partners affiliated with the National Skill Development Corporation (NSDC)/Sector Skill Councils, State Skill Mission, or State Skill Corporation is also considered eligible.
- The preferred courses should ideally lead to a certificate, diploma, or degree issued by the respective organisation, aligning with the National Skill Qualification Framework (NSQF). It’s important to note that the Government of India/State Governments may periodically notify specific institutes or organisations that meet the eligibility criteria for the loan.
Documents Required
While specific document requirements may vary based on the type of education loan and the individual circumstances, generally, IDBI Bank may ask for the following documents when processing an education loan application:
| Documents | Details |
| Application Form | Duly filled and signed loan application form. |
| Photographs | Passport-sized photographs of the applicant and co-applicant. |
| Identity Proof | Proof of identity, such as Aadhar card, passport, voter ID, or driver’s licence. |
| Residence Proof | Proof of residence, like Aadhar card, utility bills, or rental agreement. |
| Admission Letter | Letter of admission from the educational institution where the student has secured admission. |
| Fee Structure | Detailed fee structure of the course, including tuition fees, examination fees, and other related expenses. |
| Academic Records | Mark sheets and certificates of the qualifying exams. |
| Co-Applicant’s Documents | If applicable, documents of the co-applicant (usually a parent or guardian) such as identity proof, residence proof, and income proof. |
| Income Proof | Income proof of the co-applicant to demonstrate their ability to repay the loan. This may include salary slips, income tax returns, or other relevant documents. |
| Collateral Documents | If collateral is required, documents related to the collateral, such as property papers, fixed deposit receipts, or other assets. |
| Bank Statements | Bank statements of the co-applicant for the last six months. |
| Any other specific documents | Additional documents may be required based on the specific loan product, the amount of the loan, and other individual factors. |
How To Apply For IDBI Bank Education Loan?
Setting out on the path to secure an education loan from IDBI Bank through the offline process is notably a straightforward process. However, IDBI Bank also provides an online application option to speed up the process at the comfort of your home. Follow this user-friendly step-by-step guide to successfully start your application:
Offline Application:
- Head to your nearest IDBI Bank branch and approach the loan officer to learn about the available education loan products.
- Communicate with the loan officer to understand the required documents for the education loan application. Gather all necessary documents, including proof of identity, address, academic records, and other relevant information.
- Fill out the education loan application form accurately, providing all required details. Attach any supporting documents and submit them to the relevant department or officer to initiate the processing of your education loan.
- Stay in touch with the bank for any additional information they may need during the processing of your application. Be responsive to queries and allow the bank time to assess your eligibility.
- Once approved, the bank will give you an education loan sanction letter and then disburse the education loan amount per the agreed terms. Understand the repayment conditions and adhere to the repayment schedule.
Online Application:
- Head to the official website of IDBI Bank or Vidya Lakshmi portal and to locate the online education loan application section.
- If required, create an account on the bank’s online portal or Vidya Lakshmi portal. Log in with your credentials.
- Complete the online education loan application form with accurate details. Upload digital copies of required documents.
- Review your application, ensuring all details are accurate. Submit the application online.
- Keep track of your application status through the online portal. Respond promptly to any requests for additional information.
- Upon approval, the bank will disburse the loan amount according to the agreed terms. Familiarise yourself with the repayment terms for a smooth repayment journey.
IDBI Bank Repayment Process & Terms
The repayment terms of IDBI Education loans vary depending on the loan you are opting for. Given below are the repayment terms and a general process for IDBI education loans for different loan purposes tabulated below-
| Loan Type | Repayment Terms Of IDBI Education Loans |
| IDBI Overseas Education Loan | Up to 15 years after a moratorium period. Moratorium period: Course period plus 1 year. |
| IDBI Non-Vocational Course Loan | Up to 15 years after a moratorium period. Moratorium period: Course period plus 1 year. |
| IDBI Skill Loan | Moratorium period: Repayment behaviour encouraged during the course period. However, specific courses or certain sections of students may be considered for a moratorium by the sanctioning authority. Repayment starts after the moratorium period: For courses up to 1 year: 6 months from course completion. For courses above 1 year: 12 months from course completion. Repayment tenure: Loans up to Rs.50,000 up to 3 years.Loans between Rs.50,000 to Rs.1 Lakh Up to 5 years. Loans above Rs.1 Lakh Up to 7 years. |
General Repayment Process For IDBI Education Loans
- EMI payments: You’ll have fixed monthly EMI payments to be made throughout the loan tenure, which can range from 5 years to 15 years depending on the loan amount and course duration.
- Interest calculation: Simple interest is applied during the moratorium period, and then compound interest kicks in during the repayment period.
- Early repayment: You can prepay your loan partially or fully anytime without any foreclosure charges.
Courses Eligible On IDBI Bank Education Loans To Study Abroad
IDBI Bank has thoughtfully curated a comprehensive list of eligible courses for study-abroad education loans, ensuring that aspiring students have the opportunity to pursue programmes that not only enhance their academic excellence but also pave the way for profitable career prospects.
The eligibility criteria include a wide range of educational courses, beginning with job-oriented professional and technical courses to PhD or research-based courses.
- Graduation: Job-oriented professional and technical courses at esteemed universities or institutions abroad.
- Post-graduation: Includes advanced programmes like MCA, MBA, MS, and more to enhance your academic and career prospects.
- Courses conducted by CIMA-London, CPA in the USA, etc.: For CPA/CIMA courses, the education loan covers examination fees and travel costs exclusively.
- Degree or diploma courses like aeronautical, pilot training, shipping, etc.: Recognition by competent regulatory bodies in India or overseas for employment eligibility.
- PG degrees and PG diplomas: Support for postgraduate degrees and diplomas from renowned institutes or universities.
Apart from IDBI, there are several banks and NBFCs which provide education loans in India. Please find the top education loan providers for abroad studies listed below:
- ICICI Bank Student Loan
- Axis Bank Student Loan
- InCred Education Loan
- Bank of Baroda Education Loan
- Prodigy Finance Education Loan
- Leap Finance Student Loan
The best part is that you can access all of these providers through UniCreds, a marketplace for all things study loans. Through UniCreds, you can avail faster loan approvals at the lowest processing fees!
FAQs
Q1. What is the margin of an education loan in IDBI?
Ans: Before each disbursement, a payment of 15% of the total programme cost is required, regardless of the loan amount or place of study.
Q2.What is the interest rate for an education loan from IDBI Bank?
Ans: IDBI Bank offers education loans with collateral at an interest rate ranging from 9% to 11%, and without collateral in the range of 11% to 13%.
Q3. Does IDBI Bank give education loans without collateral?
Ans: Indeed, IDBI Bank provides education loans without requiring collateral, with interest rates varying between 11% and 13%. Nevertheless, the maximum loan amount available to a student without collateral depends on various factors within the student’s loan profile.
Q4. Can I study vocational courses with education loans from IDBI?
Ans: IDBI Education Loan supports vocational courses for Indian citizens who secure admission in programmes backed by government entities or organisations affiliated with the National Skill Development Corporation or State Skill Missions. The courses should ideally lead to certifications, diplomas, or degrees issued by government organisations.
Q5. Is the repayment tenure flexible for education loans from IDBI?
Ans: Yes, IDBI bank provides 15 years of repayment tenure with a moratorium period spanning 1 year for the students to have a breathing space to find jobs and get financially capable of paying the EMIs
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